PhonePe brings internet-free UPI payments to feature phones, expanding digital access across India
PhonePe’s latest move could make digital payments more accessible to millions of basic handset users, particularly those in areas where reliable mobile internet remains limited or unavailable.
- Sep 1, 2026,
- Updated Sep 1, 2026 10:44 AM IST
Digital payments have become a routine part of everyday transactions in India, but access can depend on the kind of phone you carry and the network available around you. For people using basic handsets, sending money, paying merchants or checking banking information has traditionally involved more limitations than smartphones. That gap becomes more important in areas where connectivity is weak, particularly when users need to complete a payment without mobile internet.
Must Read: Festive sales are heating up, but so are online shopping scams: How to stay safe
Now, a development is set to broaden how users can access UPI services, bringing more payment options to people who rely on feature phones for communication and financial needs.
PhonePe UPI 123Pay comes to feature phones
PhonePe has launched UPI 123Pay across India for compatible feature phones. It works without internet, using SMS for money transfers and merchant payments, including in areas with limited 2G connectivity.
The service brings UPI to more than 200 million feature phone users and supports person-to-person transfers, merchant payments, bank balance checks and transaction history. PhonePe plans to add bill payments, mobile recharges and Aadhaar-based UPI registration.
Supported phones and setup
The service is initially available on select HMD, Nokia, Lava International and Itel Mobile phones. HMD confirmed support for HMD 105 2G, HMD 110 2G, Nokia 105 Classic, Nokia 105 Single SIM, Nokia 105 Dual SIM, Nokia 106 and Nokia 123 Shield, with more models expected.
You can activate it through the pre-installed PhonePe app. Accept the terms, select your bank, enter the last six digits and expiry date of your debit card, and create a UPI PIN.
Once registered, you can pay through a contact, mobile number or UPI ID. Camera-equipped phones can scan QR codes. Verify the recipient, enter the amount and UPI PIN, then confirm.
An AI-powered voice helpline supports English and 12 Indian languages, offering activation guidance and answers to basic UPI queries.
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Digital payments have become a routine part of everyday transactions in India, but access can depend on the kind of phone you carry and the network available around you. For people using basic handsets, sending money, paying merchants or checking banking information has traditionally involved more limitations than smartphones. That gap becomes more important in areas where connectivity is weak, particularly when users need to complete a payment without mobile internet.
Must Read: Festive sales are heating up, but so are online shopping scams: How to stay safe
Now, a development is set to broaden how users can access UPI services, bringing more payment options to people who rely on feature phones for communication and financial needs.
PhonePe UPI 123Pay comes to feature phones
PhonePe has launched UPI 123Pay across India for compatible feature phones. It works without internet, using SMS for money transfers and merchant payments, including in areas with limited 2G connectivity.
The service brings UPI to more than 200 million feature phone users and supports person-to-person transfers, merchant payments, bank balance checks and transaction history. PhonePe plans to add bill payments, mobile recharges and Aadhaar-based UPI registration.
Supported phones and setup
The service is initially available on select HMD, Nokia, Lava International and Itel Mobile phones. HMD confirmed support for HMD 105 2G, HMD 110 2G, Nokia 105 Classic, Nokia 105 Single SIM, Nokia 105 Dual SIM, Nokia 106 and Nokia 123 Shield, with more models expected.
You can activate it through the pre-installed PhonePe app. Accept the terms, select your bank, enter the last six digits and expiry date of your debit card, and create a UPI PIN.
Once registered, you can pay through a contact, mobile number or UPI ID. Camera-equipped phones can scan QR codes. Verify the recipient, enter the amount and UPI PIN, then confirm.
An AI-powered voice helpline supports English and 12 Indian languages, offering activation guidance and answers to basic UPI queries.
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine